Common Mistakes Made When Purchasing Entertainment Insurance

There are a number of common mistakes some entertainment companies make when it comes to purchasing insurance. Insurance is the product you buy in case the unexpected happens. Unfortunately, by the time you need it, it's too late to make sure you have the right type and amount of insurance coverage. Make sure you don't make the following mistakes while buying business insurance or personal insurance.

Common mistakes

Not using an agent who knows and understands the entertainment industry

The staff at John Hart Insurance has over 60 years combined experience in the field of entertainment insurance.  We focus exclusively on understanding the unique needs of motion picture, television, video, music and theatrical companies.  This knowledge base allows us to structure an insurance program specifically for each client that will be a balance of the best coverage and most economical solutions to help them manage the risks inherent to their unique businesses.

Having two agents is better because they keep each other competitive

Having two agents duplicates effort and can create coverage gaps. For example, there are certain coverage’s that can be included under a liability policy and auto policy. One agent is better able to manage your entire insurance program.

The lower the premium the better- wrong

Premiums are determined by a combination of exposures and coverage. If you get a lower premium you may be missing needed coverage. For example, does the lower premium include replacement cost   coverage on buildings and equipment?

The internet is a great place to get good insurance deals

Low cost internet insurance usually allows you to select the coverage and limits you want. But in most cases you end up with a limited and inadequate program. You find this out after you have an uninsured claim.

Mexico? No problem, we are covered

If you travel to Mexico as part of your production, we recommend special foreign coverage.

There isn’t anything I can do to manage my insurance costs except shop low price

·         There are many things you can do to reduce your premiums, here are a few:

·         Consider increasing your deductibles.

·         Consider the vehicle model when make a purchase, some are more expensive to insure.

·         Add smoke and security alarms to your office.

Through our relationships with many A-rated national and regional insurance companies, we provide a comprehensive array of insurance products for a variety of personal and commercial clients. Our goal is to provide exceptional service while giving you peace of mind so you can focus on what you do best, create. Give us a call and let us show you how we can save you time and money on your insurance.

Replacement Cost For Production Equipment

You purchase property insurance to cover losses you may have to your commercial buildings, movie and production equipment, props and property. There are a number of decisions you make regarding your coverage that will determine how the loss will be viewed by the insurance company. One of the most important aspects of your entertainment insurance policy is how your property is valued; there is replacement cost coverage (RC), and there is actual cash value basis (ACV).

What Is Replacement Cost Coverage?

Replacement cost coverage essentially means that the insurance company will replace the damaged or destroyed property with new property up to the policy limit, as long as it is with like kind and quality.  This may seem simple, but it's not quite that simple in every case. If the value is not accurate, your loss may not be fully covered.

This insurance pays the full amount needed to replace the asset or property up to the policy limit. Any gradual reduction of the asset value or depreciation is not taken into account for insurance claim purposes. This can be very important in the entertainment industry with all the high valued equipment.

Replacement cost works for most types of property, however, it's not perfect for everything. A copy of a Picasso is not a Picasso, so fine art is not always covered under a replacement cost policy. It also doesn't work for one of a kind machinery or tools and dies. For those types of items you probably need to have a scheduled policy that actually agrees upfront what the value of those items should be.

What is Actual Cash Value?

ACV is replacement cost less depreciation.  For example, if you have a 6 year old expensive camera that will cost $55,000 to replace, ACV would value the camera at $55,000 minus 6 years of depreciation or as low as $7,000. The depreciation is usually calculated by establishing a useful life of the item determining what percentage of that life remains. This percentage multiplied by the replacement cost equals the ACV.

We almost always recommend RC for all customers. 

Five Keys To Safety For Any Production

It seems that there are far too many injuries and accidents around movies and other productions. In our mind one accident or loss is too many. While our agency does not provide safety services, safety should be part of every production. If we can help reduce accidents there will be fewer insurance claims and a more productive work force. Having a comprehensive safety program cannot guarantee your production will be accident free, but it is the right thing to do.

Five Keys to Safety

1. Have well written safety procedures for all activates. Know what OSHA requires and then attempt to exceed their standards
2. Provide regular training. Safety only works if your crew understands what their roles and responsibilities are.
3. Celebrate success. There is nothing better than to complete a production with no accidents or injuries. Provide rewards and celebrate with your crew!
4. Make safety more about behavior rather than rules. Effective safety in the entertainment industry is about changing behavior. This attitude must start at the top. Producers and managers must be onboard with creating an environment where safety is valued and appreciated.
5. Safety should not be just about following OSHA guidelines, but reducing unsafe behavior and accidents. OSHA guidelines should always be followed, but more important, is that you should have a accident free production. That may take more work than just following OSHA rules.

Safety and insurance when combined is a powerful tool to help production companies reduce losses, minimize accidents and even keep premiums as competitive as possible. John Hart Insurance has over 60 years combined experience in the field of entertainment insurance.  We focus exclusively on understanding the unique needs of motion picture, television, video, music and theatrical companies.  This knowledge base allows us to structure an insurance program specifically for each client that will be a balance of  the best coverage and most economical solutions to help them manage the risks inherent to their unique businesses.

At John Hart Insurance.... "If it's fun, we insure it"

That is our motto, but just what do we mean by this? JohnHart Insurance specializes in the entertainment industry. The entertainment industry creates fun, educational and even inspirational movies, TV, film and more. With this activity comes a certain amount of risk. Risks can include lost or damaged equipment, injury on sets, copy write litigation, injury to cast and crew and more. Our job is to partner with our clients to help them reduce their risk and protect their assets.

Our clients develop, create and produce fun productions for the public. At John Hart Insurance, we help manage the risk associated with creating fun. 

Here are some of our key products and services:

• Insurance For  Props, Sets and Wardrobe: Covers damage to specific equipment during production or events.
• Producers Errors & Omissions: Covers legal liability and defense for the production company against lawsuits alleging unauthorized use of title, format, ideas, characters, plots, plagiarism, unfair competition or piracy.
• Workers Compensation: Covers injury to crew members as required by state law.
• Insuring Equipment: Covers cameras, sound/lighting equipment and rented or leased equipment.
• Cast Insurance: Covers production companies’ extra expenses in the event of death, injury or illness to performers.
• Comprehensive Liability Coverage: Protects the production company against claims for bodily injury or property damage liability arising out of filming. Coverage includes use of all non-owned vehicles (both on and off camera) including physical damage to such vehicles. This coverage will be required prior to filming on any city or state roadways, or any location sites requiring filming permits.

What Is The Difference Between An Independent Agent And A Direct Writer?

Commercial insurance including some entertainment insurance can be purchased on line these days. Many companies spend millions in ads. These ads may be entertaining, but how in the world can you really tell these companies apart? What are the differences?  Is one company really better than any other?  Will the coverage, price, and service meet my needs?

There are two distinct kinds of agents in the United States; Independent brokers and direct writers. Let’s define these for you.

Independent Broker- John Hart Insurance

An independent broker is a business that is owned and operated by local business professionals. Some larger firms may have a board of directors and many partners, but usually the ownership is local and independent. These brokers offer many different insurance products through many different insurance companies. Independent brokers sell the products that most appropriately meet the needs of their clients. Independent brokers typically are very well trained and knowledgeable of the complexities of the insurance market and insurance law.

Most independent brokers have multiple companies from which to shop your insurance needs. This makes it more likely that they will find the exact fit for your specific situation. It also allows for greater competition, which benefits the client.

The goal of the independent broker is to provide the best possible combination of coverage, price and service. For example, independent agents have experience in understanding what services insurance companies provide and are able to match unique services with client needs. Not all insurance companies are alike.

The John Hart Agency specializes in the entertainment industry. The staff at John Hart Insurance has over 60 years combined experience in the field of entertainment insurance.  We focus exclusively on understanding the unique needs of motion picture, television, video, music and theatrical companies.

Direct Writers

A direct writer is an agent who distributes policies for only one insurance company. Direct writers are agents paid by the insurance company and cannot utilize the entire insurance market.

The value of the insurance you buy truly is established when and if you have a claim. Independent brokers advise and help clients through the claim process.

Stunt Insurance is no Accident

Many productions in California and other places use stunt men and women in their filming. Stunts can be risky and dangerous, but we all love the final outcome. Even training films often include stunts as part of the production.  However, many traditional insurance packages don’t automatically cover stunt work. We can provide the right kind of insurance for your production company.

Stunt Insurance

We can provide special stunt coverage for many of the productions you are involved in. Producers and production companies can attain coverage for the following... Stunts, aerial scenes, falls, fight scenes, recreational vehicles, water scenes, weapons, precision driving, and animals. 

Here are a few if the stunts that should be insured:

•          Aerial Work
•          Fight Scenes
•          Animals
•          Scripted Falls
•          Special Driving
•          Use of Weapons
•          Underwater Work

The staff at John Hart Insurance has over 60 years combined experience in the field of entertainment insurance.  We focus exclusively on understanding the unique needs of motion picture, television, video, music and theatrical companies.  This knowledge base allows us to structure an insurance program specifically for each client that will be a balance of the best coverage and most economical solutions to help them manage the risks inherent to their unique businesses.

What Does Property Insurance Cover?

Entertainment Property Insurance

John Hart Insurance has provided all facets of the entertainment industry with highly specialized insurance coverage and service. Whether it's for crew, talent, props, equipment, or intellectual property, our experts can satisfy your unique insurance needs.

Most of our entertainment clients purchase property insurance. There is a variety is coverage options depending on your individual needs.

Types of Industries we insure

•      Commercial films
•          Music videos
•          Musicians
•          Concert promoters
•          Entertainers and performers
•          Performance venues
•          Commercials, documentaries, industrial & educational training films
•          Commercial films
•          Music videos
•          Musicians
•          Broadway productions
•          Rental houses
•          Concert promoters
•          Entertainers and performers
•          Performance venues
•          Commercials, documentaries, industrial & educational training films

What are the kinds of property coverage needed in the entertainment industry?

•          Property in transit and temporary locations
•          Insurance for buildings and office equipment
•          Property for special props and sets
•          Specialized insurance for cameras
•          Intangible coverage: Includes patents, scripts, copyrights and trademarks
•          Computer virus protection: Covers the loss of data and business through computer viruses
•          Crime and employee dishonesty
•          Business income and extra expense
•          Boiler and machinery coverage

We can examine your current policies to see if you have the coverage you need. Just request an insurance review. An experienced agent will meet with you to go over your policies and explain any details you might not be sure about. As an independent commercial insurance agency we work with a variety of insurers who may be able to provide a quote for your property coverage that could save you money as well.